US Retailer Store Closures Could Top 12K By Yearend

So far this year, 7,062 retail stores have closed, and that number could reach as high as 12,000, which would be an all-time record, according to a report by CNBC.

Coresight Research, which keeps track of store closings, said that last year there were only 5,524 store closings, which was down 30 percent from the previous record of 8,139 closings in 2017.

Part of the reason is the changing retail landscape. Sales have been continuously moving online, and brands like Allbirds, Warby Parker and Casper are becoming increasingly popular.

Malls are also struggling and changing, as landlords realize that they need to diversify with things like more food, apartments and hotels to fill the spaces.

Fred’s, a pharmacy retail store, will close 129 locations this year. Accessories company Charming Charlie filed for bankruptcy protection just this week and said that it will close all 261 of its stores by the end of August.

Bed Bath & Beyond is going to close about 40 stores and open 15. The company said it wants to “negotiate more favorable lease terms with … landlords,” but that if it can’t do that it will close more stores.

Women’s fashion store Dressbarn is going out of business for good. The company that owns it, Ascena Retail Group, said that it’s going to shutter all the stores to focus more on profitable brands like Ann Taylor and Loft. There are 650 stores in total that will close.

Fashion Brand Topshop is closing all 11 of its stores. It said that “challenging retail headwinds, changing consumer habits and ever-increasing online competition,” made the change happen.

Party City is also struggling and will close about 45 stores this year. It had been closing about 10 to 15 a year, and shares are down 28 percent.

Pier 1 Imports will close around 57 stores this year, and the company said that if it is “unable to achieve our performance goals, sales targets and reductions in occupancies and other costs,” it will close more.

Other stores like CVS, Gap, Victoria’s Secret and Chico’s are all facing similar circumstances.